Use the following information to answer the next two questions:
A firm's fixed costs are $5000.The firm charges $12 for each unit.For every additional unit the firm produces,it costs the firm $8.
-What's the firm's contribution margin?
A)$12
B)$10
C)$8
D)$4

Question

Quizplus · Accepted Answer

The contribution margin is calculated as the selling price per unit minus the variable cost per unit. Here, it is $12 (selling price) - $8 (variable cost) = $4.

Use the Following Information to Answer the Next Two Questions